Chinese automaker sold 2.3 million vehicles in 2024 and seeks to expand its production outside China
Chery Automobile Co. Ltd. launched its IPO (initial public offering) in Hong Kong on Wednesday (17.Set.2025), with the aim of raising up to 9.1 billion dollars from Hong Kong (US $ 1.2 billion) to accelerate the development of electric vehicles and expand production abroad.
Anhui -based automaker, founded in 1997, remains one of the few major Chinese car manufacturers who have not yet opened capital. Last year, he sold 2.3 million vehicles, occupying the second position between Chinese independent brands and the 11th globally.
Chery is also China’s main car exporter, with foreign sales representing a large portion of its business. From 2022 to 2024, exports corresponded, respectively, to 32.8%, 47.2% and 37.4% of its total revenue.
Chery’s IPO plan comes after his initial request to list in Hong Kong expired in August. The company re -presented on August 29 and passed the scholarship listing hearing on September 7, paving the way for its debut on September 25 under Ticker 09973.hk.
The company plans to sell about 297 million shares at 27.75 dollars from Hong Kong at 30.75 dollars from Hong Kong each. If fully exercised, a supplementary lot option would add 44.6 million shares, raising the total to about 5.16% of its capital.
Chery has already secured strong support. Investors Anchor, including JSC International Investment Fund SPC, Hhlr Advisors, Greenwood Assets Management, Dajia Insurance Group Co. Ltd. and Battery Manufacturer Gotion High-Tech Co. Ltd., subscribed about half of the offer, worth $ 587 million.
At the average price of Hong Kong’s $ 29.25 per share and excluding the supplementary option, IPO should yield $ 8.44 billion of liquid Hong Kong after rates, according to the prospect.
Chery plans to allocate 35% of resources to develop new models and update existing lines, focusing on electric vehicles. Another 25% will go to next -generation technologies, including EV platforms, smart cockpits and advanced driver assistance systems.
The company also seeks to defend its export leadership against rivals rapidly, such as Byd Co. Ltd. in the first 8 months of 2025, Chery exported 793,000 vehicles, compared to BYD 634,000, according to the Chinese Association of Automobile Manufacturers.
To expand global capacity, Chery will invest 20% of IPO resources in abroad factories, including $ 1.01 billion from Hong Kong, a new unit in Vietnam and the expansion of its installation in Malaysia. The Vietnam factory will add an annual capacity of 19,000 vehicles, while Malaysia will add 36,000.
Chery also plans to hire from 1,000 to 1,500 engineers to R&D centers in Europe, Southeast Asia and North America to adapt vehicles to local driving habits.
Analysts said the Hong Kong listing will give Chery greater financial power, but warned that China’s automotive market remains relentless. “Consolidation is likely in the next 2 to 3 years,” said a sector analyst. “Private manufacturers and EV startups who cannot follow may face mergers or be absorbed by state giants.”
This report was originally in English by the global cash on 18.SET.2025. Was translated and republished by Poder360 under mutual content sharing agreement.
